How 9 Countries Saw Inflation Explode Into Hyperinflation

Wikimedia CommonsA 1,000 córdoba banknote, which was re-printed with a value of 200,000 córdobas during the inflationary period of the late 1980s.

Hyperinflationary episodes have appeared several times over the past century — 55, to be exact — as the world's nations have experimented with fiat currencies backed by the full faith and credit of the governments that issue them.

At times, that full faith and credit has been misplaced — and holders of unstable currencies have been caught empty-handed in countries all over the world.

Often, this is can be a recurring theme among developing nations like those in Latin America during the debt crisis that struck the region in the 1980s.

Even some of the largest economies in the world today, though — like China, Germany, and France — have suffered devastating hyperinflationary episodes.

A major historical precursor of hyperinflation is war that destroys the capital stock of an economy and dramatically reduces output — but the misplaced monetary and fiscal policies that ensue are almost always part of the story.